This looks exactly like every third intersection in India. I saw this kind of packing and craziness in Bangalore, Mysore, and New Dehli when I was travelling for work last September.
I did hire a motorcycle for a day and go riding with my fiance, but I only did that in the off-season in Goa, which is the Indian beach/vacation state. There was a little craziness here and there, but nothing like the big cities. Complications included the different shift pattern on the bike (top to bottom: N-1-2-3-4), the wildly different torque curve of a 135cc two-stroke, and the completely inferior front drum brake (I barely touch the rear brake on my own ride).
The way it works is: everyone is always looking forward and picking their own way through. Top speed rarely gets up to 45km/h and is more usually in the 25-35km/h range. Side mirrors are folded out of the way (if they're mounted at all) to make it easier to slip into tight spaces at intersections. Right of way rules: military wins, then big to small, then the vehicle in front wins. Head on encounters (left turn through traffic) are negotiated individually, though speed is much reduced (as you can see in the Saigon movie).
In order to let a driver in front of you know that you are behind them, you honk your horn. An almost constant stream of single beeps is a simple "here I am" message. Two or three quick beeps is usually an acknowledgement of some sort (I hear you. I see your turn signal. etc.) Long blasts on the horn are usually reserved for "you're an asshat".
A road vehicle in India may not have windows, decent tires, an actual seat, working headlights or doors, but it will absolutely positively have a perfectly functioning horn or it will not be used on the street.
It was all quite interesting once I overcame my fear of nearly constant collision and started paying attention to what was going on around me.
Later,
Ross